1st year pay (how to survive on it)
10-18-2010, 07:18 PM
#1
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Thread Starter
Joined APC: Nov 2006
Posts: 47
1st year pay (how to survive on it)
now that there is some hiring going on and as a hopeful new hire somewhere that would be taking a pay cut on 1st year pay. I was just wondering what some of you guys did to try and offset the the initial pay cut of 1st year pay (other then hoard your money, which i am currently trying.) ie second job, etc.
thx
thx
10-18-2010, 07:24 PM
#2
Gets Weekends Off
Joined APC: Jul 2008
Posts: 5,040
That's a tough one. I never bought a house, new car, or had any kids while at a regional. I waited until I was passed 1st year pay at a major to have a kid and buy a house. I still haven't bought a new car. My wife was also working up until the have a kid point.
10-18-2010, 07:42 PM
#3
Underboob King
Joined APC: May 2005
Position: Guppy Commander
Posts: 4,412
the key is to not over extend yourself so that when/if the opportunity arises that you can go with minimal sacrifice. With that said, my wife went back to working full time also to help offset the loss of income. Its more than worth it to make the jump though, good luck.
10-18-2010, 08:21 PM
#4
On Reserve
Joined APC: Jul 2008
Posts: 16
10-18-2010, 08:57 PM
#5
Gets Weekends Off
Joined APC: Apr 2008
Position: DAL FO
Posts: 2,192
Agree with all of the above. Don't be one of those "I can't afford the paycut" guys. It's all about how much you spend and how extended you've gotten yourself while before you make the jump. Everyone can afford to do it if they plan appropriately and live within their means (due respect given to the guy with a chronically sick child, parent, extenuating circumstance, etc.)
It can be done, and is definitely worth it if you just keep your spending under control, which it sounds like you are.
As super said, good luck!
Btw, at least at Delta, it won't be unbearable on first year pay as we're at around $53-ish an hour to start @ 70 hour reserve guarantee. You won't be rich, but you should be able to get by without digging a huge hole while on first year pay. It goes by quick, and you'll be back to where you were before you know it. Did I say good luck?!
It can be done, and is definitely worth it if you just keep your spending under control, which it sounds like you are.
As super said, good luck! Btw, at least at Delta, it won't be unbearable on first year pay as we're at around $53-ish an hour to start @ 70 hour reserve guarantee. You won't be rich, but you should be able to get by without digging a huge hole while on first year pay. It goes by quick, and you'll be back to where you were before you know it. Did I say good luck?!
10-18-2010, 09:14 PM
#7
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,544
Just to pile on what others said, do the following to the best of your ability:
Agressively get rid of debt.
Do not take on additional debt, other than a modest house if necessary.
Live within your means (if you are a regional FO) or below your means if you are a regional CA). Of course that's not a lot of money, but plenty of occupations all over the country (of course there are exceptions) make only 30-50K including many teachers, cops, firefighters, nurses, etc. Including many if not most who have families. If you chose this occupation, don't dig yourself a hole by living on credit or buying things you can't afford. That is a huge but common mistake for tons of people these days, but you are just tempting fate by doing that in this industry especially.
Have or be working on a plan B.
Delay gratification like a Buddhist monk. Seriously. If you "qualify" for a new BMW, get a used Toyota. If you can get a 350K house, get a 150K house instead. Cancel the cable bill and put it into your IRA.
Pay yourself (401K, savings, etc). I flew with a single young buck FO with no kids once who wasn't contributing to his 401K even though not doing so was causing him to miss out on the company match. His reason was that he bought a new car and the payments were really pushing it. Srsly? Yep. Flew with a senior CA once who (fairly recently) just bought a 600K second/vacation home. Had to fly an ungodly number of average credit hours a year to make it work too. Literally paycheck to paycheck with hardly any reserves so if anything significant happened, he'd be screwed. Would someone like that pick open time with guys on furlough? Who knows. We all know guys like that and their own self inflicted bad life choices and financial ineptitude hurt themselves and the entire profession.
Keep it in your pants. Seriously. Realize that while in some cases divorce is the only realistic outcome, its way, way, way, way, way cheaper to keep her. As in you can afford one divorce while you're young, but anything other than that is a devastating financial move that you will never recover from unless you marry a movie star and/or hotel heiress and odds are you ain't ever gonna do that. Along that line, there are many FA's that are great people. Genuine life mates. Great parents. Just good people all around. Some are even hot as well. But realize that a great number fall far short of that, and whatever their disposition, odds are you are only going to date them because they are there. That + time often = you just lost half your stuff and you're too old to make it up and oh yeah, sistas still gettin paid. 18 years. 18 years. She got one of yo kids she got you fo 18 years. Your investment just getting into this level of the profession is measured in decades while someone else's is measured in a few weeks from off the street. I'm not advocating being superficial one bit. Just don't lose your S.A. over some T&A. Just think about it that's all.
Take care of yourself. We all have our vices and this isn't about judgement. But just like you monitor the systems and status of your aircraft on a long flight, periodically audit your own life and lifestyle choices. Smoking? Really? Drink too much? Seriously overweight? Cruddy diet jacked on sodium and fried foods? Too much sun? Not enough exercise? It's not always easy to fully realize the full impact of a negative trend vector when it's been slowly developing over years or decades. It's your medical, your medical is your career and your career is your retirement. 65 year old you will regret every cigarette and unhealthy meal you ever had.
So in answer to your question, other than marrying rich, if you get a better long term job with a first year paycut, you should already be in a position to deal with it because you should already be living at that level. For the years you make more, or even a lot more, then pump up your savings, retirement, pay down debt and the like. But whatever you do, please do NOT leverage your credit during the good years to get your hands on things you couldn't afford if you lost your current job. Save and pay cash and then you can afford it.
Agressively get rid of debt.
Do not take on additional debt, other than a modest house if necessary.
Live within your means (if you are a regional FO) or below your means if you are a regional CA). Of course that's not a lot of money, but plenty of occupations all over the country (of course there are exceptions) make only 30-50K including many teachers, cops, firefighters, nurses, etc. Including many if not most who have families. If you chose this occupation, don't dig yourself a hole by living on credit or buying things you can't afford. That is a huge but common mistake for tons of people these days, but you are just tempting fate by doing that in this industry especially.
Have or be working on a plan B.
Delay gratification like a Buddhist monk. Seriously. If you "qualify" for a new BMW, get a used Toyota. If you can get a 350K house, get a 150K house instead. Cancel the cable bill and put it into your IRA.
Pay yourself (401K, savings, etc). I flew with a single young buck FO with no kids once who wasn't contributing to his 401K even though not doing so was causing him to miss out on the company match. His reason was that he bought a new car and the payments were really pushing it. Srsly? Yep. Flew with a senior CA once who (fairly recently) just bought a 600K second/vacation home. Had to fly an ungodly number of average credit hours a year to make it work too. Literally paycheck to paycheck with hardly any reserves so if anything significant happened, he'd be screwed. Would someone like that pick open time with guys on furlough? Who knows. We all know guys like that and their own self inflicted bad life choices and financial ineptitude hurt themselves and the entire profession.
Keep it in your pants. Seriously. Realize that while in some cases divorce is the only realistic outcome, its way, way, way, way, way cheaper to keep her. As in you can afford one divorce while you're young, but anything other than that is a devastating financial move that you will never recover from unless you marry a movie star and/or hotel heiress and odds are you ain't ever gonna do that. Along that line, there are many FA's that are great people. Genuine life mates. Great parents. Just good people all around. Some are even hot as well. But realize that a great number fall far short of that, and whatever their disposition, odds are you are only going to date them because they are there. That + time often = you just lost half your stuff and you're too old to make it up and oh yeah, sistas still gettin paid. 18 years. 18 years. She got one of yo kids she got you fo 18 years. Your investment just getting into this level of the profession is measured in decades while someone else's is measured in a few weeks from off the street. I'm not advocating being superficial one bit. Just don't lose your S.A. over some T&A. Just think about it that's all.
Take care of yourself. We all have our vices and this isn't about judgement. But just like you monitor the systems and status of your aircraft on a long flight, periodically audit your own life and lifestyle choices. Smoking? Really? Drink too much? Seriously overweight? Cruddy diet jacked on sodium and fried foods? Too much sun? Not enough exercise? It's not always easy to fully realize the full impact of a negative trend vector when it's been slowly developing over years or decades. It's your medical, your medical is your career and your career is your retirement. 65 year old you will regret every cigarette and unhealthy meal you ever had.
So in answer to your question, other than marrying rich, if you get a better long term job with a first year paycut, you should already be in a position to deal with it because you should already be living at that level. For the years you make more, or even a lot more, then pump up your savings, retirement, pay down debt and the like. But whatever you do, please do NOT leverage your credit during the good years to get your hands on things you couldn't afford if you lost your current job. Save and pay cash and then you can afford it.
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